- (1.) Leave granted.
(2.) Challenge in this appeal is to the order passed by a learned Single Judge of the Rajasthan High Court at Jodhpur, allowing the revision filed by the respondent. The said revision petition was filed under Section 86 of the Rajasthan Sales Tax Act, 1994 (in short the 'Act').
(3.) Factual position which is almost undisputed is as follows: The appellant is an exhibitor of cinematograph films. On 3.2.1996 cinema hall of the appellant was inspected by the Commercial Tax Inspectors. At that time a movie "Alladdin" was being shown in the morning show. At the time of inspection, 878 viewers were found watching the movie without tickets. It was found that the daily collection register maintained by the appellant was not properly maintained. The inspectors put their signatures after drawing a line in the register so that no entry can be made thereafter. Alleging that the appellant admitted 878 viewers without tickets, a show cause notice was issued under Section 10 of the Rajasthan Entertainment and Advertisement Tax Act, 1957 (in short the 'Entertainment Act') prima facie being of the view that offence under Sections 6(1) and 6(2) of the Entertainment Act has been committed. The appellant submitted its reply and stated that girl students of a school had gone to watch the movie which was meant for children and in any event there was no scope for imposition of penalty of Rs.500/- in respect of each viewer. The Commercial Tax Officer, Bhilwara was of the view that penalty at the rate of Rs.500/- per viewer was to be imposed and in addition penalty of Rs.500/- under Section 10(3)(b) was also to be imposed. The officer was of the view that mere fact that children of Mahila Aashram were being shown the picture and the tickets were to be handed over to the school authorities after counting the number of children was not relevant. The inspection was done at 10.00 a.m. when the school children had just entered the hall and, therefore, even before the show started the inspection was done. The order of assessment was challenged before the Commissioner (Appeals). The said authority found that all the tickets were with the Manager of the Cinema, but since each viewer did not possess a ticket there was contravention. Therefore, penalty under Section 10(3)(a) of the Entertainment Act was upheld while setting aside the penalty imposed under Section 10(3)(b)(iii). The appellant preferred an appeal against the said order before the Rajasthan Taxation Board, Ajmer (in short the 'Taxation Board'). Before the Taxation Board, it was contended that the total cost of the tickets was Rs.3006/- and penalty of Rs.4,39,000/- at the rate of Rs.500/- per viewer was unconscionable. The Taxation Board found that the penalty that was imposed was not imposable at the rate of Rs.500/- per viewer and the maximum penalty imposable was Rs.500/-. Revenue filed a revision petition as noted above and by the impugned order penalty imposed by the Assessing Officer was restored.;